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Ajax Manufacturing has the following cost structure: Direct material $10 Direct labor 20 Variable manufacturing overhead 5 Total variable manufacturing costs per unit $35 Fixed
Ajax Manufacturing has the following cost structure:
Direct material $10
Direct labor 20
Variable manufacturing overhead 5
Total variable manufacturing costs per unit $35
Fixed manufacturing overhead per year $100,000
Fixed selling and administrative expense per year$200,000
Assume that Ajax produces 10,000 items and sells 8,000 items. In this case, the full costing value of cost of goods sold is:
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